Northam Platinum Holdings Limited · JSE:NPH
Northam Platinum — FY2022 Earnings Presentation
48 slides from Northam Platinum's earnings presentation, September 2022
Slide 1: Northam Holdings: Mining that matters
Northam Holdings: Mining that matters Results for the year ended 30 June 2022 www.northam.co.za Page
Slide 2: Cautionary statement
Cautionary statement The presentation comprises the written materials made available together with the related verbal presentation (collectively or individually, as the context may require, the “Presentation”) concerning Northam Platinum Holdings Limited (“Northam Holdings”). By attending the Presen
Slide 3: Agenda
Agenda Key features Paul Dunne Our contribution Paul Dunne Our operations and projects Paul Dunne Financial review Alet Coetzee Operational guidance Paul Dunne Northam Platinum Holdings Limited Results for the year ended 30 June 2022 www.northam.co.za Page 3
Slide 4: Key features for the year
Key features for the year An operationally challenging year Production Operating profit Capex 716 488 oz 4E R14.9 bn R4.6 bn Increase of 3.7% on previous year Operating profit margin: 43.7% All projects on track (F2021: 690 867 oz 4E) (F2021: R16.1bn, with an operating profit margin of 49.4%) The ac
Slide 5: Our contribution
Our contribution www.northam.co.za Page
Slide 6: Our country, our contribution
Our country, our contribution 2 864 27% R6.4 bn Direct, new, meaningful, of all new recruits during F2022 Employee costs for F2022 sustainable jobs created were female in F2022 R6.8 bn R1.1bn R1.3 bn Income tax paid during F2022 Royalties paid during F2022 PAYE paid by our employees (Northam and Zam
Slide 7: Our operations and projects
Our operations and projects www.northam.co.za Page
Slide 8: Safety
Safety LTIIR per 200 000 hours worked F2015 to present 0.77 Group LTIIR 2.5 Zondereinde Booysendal Eland Group 28.3% regression from F2021 2.0 1.92 1.5 1.65 7 million fatality free shifts at Booysendal 1.31 1.29 1.29 during January 1.03 1.0 0.95 0.82 0.79 0.84 0.5 0.54 0.44 0.53 0.48 0.52 2 fataliti
Slide 9: Group operational highlights
Group operational highlights F2022 F2021 Total tonnage milled tonnes 8 660 083 8 145 457 ▲ 6.3% ▲ 8.4% Square metres mined m² 999 008 921 287 Own production equivalent refined metal oz 4E 716 488 690 867 ▲ 3.7% Total refined metal produced oz 4E 719 580 655 741 ▲ 9.7% Cash cost per equivalent ▲ refi
Slide 10: Zondereinde operations
Zondereinde operations F2022 F2021 Variance Unit % Merensky milled tonnes 983 565 1 001 678 (1.8) Merensky head grade g/t 4E 5.6 5.7 (2.3) UG2 milled tonnes 1 089 435 1 127 085 (3.3) UG2 head grade g/t 4E 4.1 4.2 (2.4) Total milled tonnes 2 073 000 2 128 763 (2.6) Average combined head grade g/t 4E
Slide 11: Zondereinde Western extension
Zondereinde Western extension Northam Platinum Holdings Limited Results for the year ended 30 June 2022 www.northam.co.za Page 11
Slide 12: Zondereinde Western extension
Zondereinde Western extension 1km Unit F2022 Old Project completion % 45 boundary 3 Target steady state PGM production oz 4E pa 120 000 Target steady state PGM production date year F2024 4 3a# Current PGM production – F2022 oz 4E 87 000 5 Total approved capital expenditure Rbn 4.7 6 3# Actual capita
Slide 13: Booysendal operations
Booysendal operations F2022 F2021 Variance Unit % Merensky North milled tonnes 647 589 391 815 65.3 Merensky North head grade g/t 4E 2.0 1.9 7.4 Merensky South milled tonnes 33 976 − 100.0 Merensky South head grade g/t 4E 1.9 − 100.0 UG2 North milled tonnes 2 432 715 2 624 373 (7.3) UG2 North head g
Slide 14: Booysendal operations
Booysendal operations F2022 F2021 Variance Unit % PGMs in concentrate from own operations oz 4E 372 623 356 620 4.5 PGMs in concentrate from third parties oz 4E 21 685 19 011 14.1 Total revenue per Pt oz in concentrate sold R/Pt oz 77 876 82 564 (5.7) Cash cost per Pt oz in concentrate produced R/Pt
Slide 15: Normal reef
Normal reef Northam Platinum Holdings Limited Results for the year ended 30 June 2022 www.northam.co.za Page 15
Slide 16: Split reef
Split reef Northam Platinum Holdings Limited Results for the year ended 30 June 2022 www.northam.co.za Page 16
Slide 17: Split reef
Split reef Northam Platinum Holdings Limited Results for the year ended 30 June 2022 www.northam.co.za Page 17
Slide 18: Split reef
Split reef Northam Platinum Holdings Limited Results for the year ended 30 June 2022 www.northam.co.za Page 18
Slide 19: Booysendal South mine
Booysendal South mine Northam Platinum Holdings Limited Results for the year ended 30 June 2022 www.northam.co.za Page 19
Slide 20: Booysendal South mine update
Booysendal South mine update Unit F2022 Project completion % 97 Target steady state PGM production oz 4E pa 255 000 Target steady state PGM production date year F2025 Current PGM production – F2022 oz 4E 162 000 Total approved capital expenditure Rbn 5.6 Actual capital expenditure to date Rbn 5.5 •
Slide 21: Booysendal South Merensky (BSM)
Booysendal South Merensky (BSM) Crusher To North Ropecon Northam Platinum Holdings Limited Results for the year ended 30 June 2022 www.northam.co.za Page 21
Slide 22: Booysendal BS4
Booysendal BS4 Stoping sections Ore conveyance to South concentrator Decline development Vent connection Northam Platinum Holdings Limited Results for the year ended 30 June 2022 www.northam.co.za Page 22
Slide 23: Eland operations
Eland operations F2022 F2021 Variance Unit % UG2 total milled tonnes 1 292 809 1 520 548 (15.0) UG2 head grade g/t 4E 2.0 2.5 (18.4) PGMs in concentrate from own operations oz 4E 33 086 32 676 1.3 PGMs in concentrate from third parties oz 4E 33 775 10 988 207.4 Total revenue per Pt oz in concentrate
Slide 24: Eland mine progress
Eland mine progress Unit F2022 Project completion % 30 Kukama Target steady state PGM production oz 4E pa 180 000 Target steady state PGM production date year F2028 Current PGM production – F2022 oz 4E 33 086 Total approved capital expenditure Rbn 4.5 Actual capital expenditure to date Rbn 2.7 • 1 3
Slide 25: Financial review
Financial review www.northam.co.za Page
Slide 26: Key financial features for F2022
Key financial features for F2022 Revenue Operating profit EBITDA R34.1bn R14.9 bn R16.5 bn (F2021: R32.6bn increase of 4.4%) Operating profit margin: 43.7% EBITDA margin: 48.3% (F2021: R16.1bn with an operating (F2021: R16.7bn with an EBITDA profit margin of 49.4%) margin of 51.0%) Net Debt Banking
Slide 27: Earnings per share
Earnings per share EPS HEPS Normalised HEPS 2 614.9 cents 2 611.1 cents 2 573.8 cents 3 000 3 000 3 000 2 681.8 2 687.9 2 614.9 2 611.1 2 573.8 2 500 2 500 2 500 2 131.9 2 000 2 000 2 000 1 500 1 500 1 500 1 000 1 000 1 000 620.0 619.5 676.3 500 500 500 270.1 82.7 17.2 15.8 0 0 0 (201.5) (200.5) -50
Slide 28: Revenue
Revenue R billions 38 4.4 4.4% Increase in revenue 37 12.8% 36 35 Increase in 4E volumes sold 0.6 34.1 34 33 32.6 (3.6) 1.4 13.4% Decrease in average 4E basket price to USD2 640 32 (F2021: USD3 049) 1.7% 31 30 Sales revenue Sales Metal Exchange Sales revenue Weaker average ZAR/USD F2021 volumes pric
Slide 29: Cost of sales
Cost of sales F2022 F2021 Variance R000 R000 % Sales revenue 34 064 270 32 626 918 4.4 Cost of sales (19 179 169) (16 519 625) (16.1) Operating costs (15 536 882) (14 484 980) (7.3) Mining operations (10 951 452) (9 003 678) (21.6) Concentrator operations (1 916 985) (1 543 974) (24.2) Smelting and
Slide 30: Statement of profit and loss
Statement of profit and loss F2022 F2021 Variance R000 R000 % Revenue 34 064 270 32 626 918 4.4 Cost of sales (19 179 169) (16 519 625) (16.1) Gross profit 14 885 101 16 107 293 (7.6) Share of earnings from associates 799 518 6 180 >1 000.0 Investment income 106 350 90 485 17.5 Finance charges exclu
Slide 31: Working capital management
Working capital management R6.3 bn R18.8 bn R1.4 bn Metal inventory balance Sales value of 4E inventory on hand Classified as non-current inventory (Using the year-end prices and to be processed in future years exchange rate) 353 137oz 4E 44 995 oz 4E 82 743 oz 4E Metal volumes on hand at year-end P
Slide 32: Free cash flow generated
Free cash flow generated R11.4 bn R4.6 bn R6.8 bn Cash flow generated from Capital expenditure incurred Free cash flow generated operating activities during the year Free cash flow was invested in the growth of the group Northam Platinum Holdings Limited Results for the year ended 30 June 2022 www.n
Slide 33: Net Debt to EBITDA
Net Debt to EBITDA F2022 F2021 Net Debt to EBITDA ratio R000 R000 F2022 Cash and cash equivalents 1 175 225 3 877 208 Domestic Medium-Term Notes (11 081 952) (7 594 235) 0.97 RCF (1 434 139) – Bridge facility (2 969 312) – Deferred Acquisition Consideration (1 704 790) – F2021 GBF Net Debt – (16 014
Slide 34: Capital allocation
Capital allocation R4.6 bn R8.4 bn R8.4 bn Capital expenditure in the execution Composite Transaction RBPlat investment of the group’s growth strategy (paid in cash) (paid in cash) Optimal balance between growth, sustaining operations and returning value to the providers of capital Northam Platinum
Slide 35: Operational guidance
Operational guidance www.northam.co.za Page
Slide 36: Operational guidance for F2023
Operational guidance for F2023 Zondereinde Booysendal Eland Group Metal production Equivalent refined metal Metal in concentrate Metal in concentrate Equivalent refined metal from own operations (oz 4E) 330 000 – 340 000 400 000 – 420 000 55 000 – 65 000 770 000 – 810 000 Metal production from third
Slide 37: Five-year group production outlook
Five-year group production outlook Equivalent refined koz 4E Booysendal Zondereinde Eland 3rd party 1 600 Outlook 1 400 1 200 1 000 800 600 400 200 0 F2015 F2016 F2017 F2018 F2019 F2020 F2021 F2022 F2023 F2024 F2025 F2026 F2027 Northam Platinum Holdings Limited Results for the year ended 30 June 202
Slide 38: Five-year capital outlook
Five-year capital outlook R millions Expansionary Sustaining 6 000 Outlook 5 000 4 000 3 000 2 000 1 000 0 F2015 F2016 F2017 F2018 F2019 F2020 F2021 F2022 F2023 F2024 F2025 F2026 F2027 Northam Platinum Holdings Limited Results for the year ended 30 June 2022 www.northam.co.za Page 38
Slide 39: PGM primary supply – Platinum
PGM primary supply – Platinum koz 7 000 Outlook 6 000 5 000 4 000 2010 2020 2030 2040 Northam Platinum Holdings Limited Results for the year ended 30 June 2022 www.northam.co.za Page 39
Slide 40: PGM primary supply – Palladium
PGM primary supply – Palladium koz 8 000 Outlook At risk 7 000 6 000 2010 2020 2030 2040 Northam Platinum Holdings Limited Results for the year ended 30 June 2022 www.northam.co.za Page 40
Slide 41: PGM primary supply – Rhodium
PGM primary supply – Rhodium koz 900 Outlook 800 700 600 500 400 2010 2020 2030 2040 Northam Platinum Holdings Limited Results for the year ended 30 June 2022 www.northam.co.za Page 41
Slide 42: Market review – automotive production
Market review – automotive production Light Duty Vehicle production (million units) 100 80 60 H2 40 20 H1 0 2019 2020 2021 2022e 2023e Source: Broker reports Northam Platinum Holdings Limited Results for the year ended 30 June 2022 www.northam.co.za Page 42
Slide 43: Market review – medium-term outlook
Market review – medium-term outlook Pt: Platinum Ir: Iridium Remains in surplus, Green hydrogen substitution growing 750 000 oz pa Green hydrogen synthesis potential additional demand Will materialise throughout the 20s Pd: Palladium Ru: Ruthenium Remains in deficit, metal of A greener, cleaner Fuel
Slide 44: Six monthly average basket price
Six monthly average basket price ZAR/Pt oz 90 000 80 000 70 000 60 000 50 000 40 000 30 000 20 000 10 000 0 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 F15 F15 F16 F16 F17 F17 F18 F18 F19 F19 F20 F20 F21 F21 F22 F22 Northam Platinum Holdings Limited Results for the year ended 30 June 2022 www.no
Slide 45: Production of 4E ounces per share
Production of 4E ounces per share Equivalent refined 4E ounces per million weighted average shares in issue 2 500 2 000 1 500 1 000 500 3.5 x GROWTH 0 F2012 F2013 F2014 F2015 F2016 F2017 F2018 F2019 F2020 F2021 F2022 Northam Platinum Holdings Limited Results for the year ended 30 June 2022 www.north
Slide 46: Five-year group production outlook
Five-year group production outlook Equivalent refined koz 4E Booysendal Zondereinde Eland 3rd party 1 600 Outlook 1 400 1 200 1 000 800 600 400 200 0 F2015 F2016 F2017 F2018 F2019 F2020 F2021 F2022 F2023 F2024 F2025 F2026 F2027 Northam Platinum Holdings Limited Results for the year ended 30 June 202
Slide 47: Questions?
Questions? Northam Platinum Holdings Limited Results for the year ended 30 June 2022 www.northam.co.za Page 47
Slide 48: Northam Platinum Holdings Limited Shareholder information
Northam Platinum Holdings Limited Shareholder information Building 4, 1st Floor Name Northam Platinum Holdings Limited Maxwell Office Park Share code NPH Magwa Crescent West Waterfall City ISIN code ZAE000298253 Jukskei View 2090 JSE sector Platinum South Africa Shares in issue 396 615 878 Tel: +27
Northam Platinum Holdings — FY2022 Earnings Presentation on 6ix